PPRuNe Forums - View Single Post - Global Eye / PIC / DeVere / Acuma et al - Zurich Vista UAE
Old 27th Mar 2017, 16:51
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johnjonesnine
 
Join Date: Mar 2016
Location: Kuwait
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Most of the more reputable advisers (and I appreciate that its not easy to tell the difference) will set up a QROPS on a fee basis rather than commission. They don't like to do it though, and they may not advertise it. They will probably frame the choice in terms of "either you can pay me X amount in cash now or else I can take a commission from the company and you don't pay anything". 99.9% opt for the latter, even though it is far more expensive.

You asked for an example, well just Googling "fee-based QROPS advice" throws up this FCA regulated firm on the first page:
Fee based advice on QROPS, UK Pension Transfers

(BTW, I have absolutely no connection to this firm, or any other financial adviser).

Regarding the amount of work involved, I would estimate the whole thing (excluding schmoozing with you) to come in at around two hours - max.

Now your average DeVere adviser has no (or at best very basic) financial qualifications. Compared to other occupations I would put them at or around the level of a regular mechanic or plumber. So I would value their time at no more than 75 pounds an hour. That means the value of the services provided to you by Devere is about 150 pounds.

You say that the transaction costs of your QROPS was 2%. I'm quite sure that 2% of your pension pot is a heck of a lot more than 150 pounds.

But the real kicker is that you didn't pay 2%. There is no commission-based QROPS in the market that only pays the broker 2%. 2% may be what they disclosed to you, They tend to start at 7% and go up from there:
Concerns raised over undisclosed QROPS transfer fees of up to 12%

Full commission disclosure is not required for QROPS anywhere in the GCC - so when I hear a pilot or a teacher or an engineer telling me that they know what they are paying I have to wonder how that could be.

Post a link to the specific product that you bought and let us all have a stab at estimating the true costs.
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